Novavax, Inc (NASDAQ:NVAX) Stock Decline


Boston, MA – (Financialstrend) – 03/24/2014 – Novavax, Inc (NASDAQ:NVAX) announced the execution of a certain contract modification for extension of the base-period of performance of the company’s current contract with the United States Department of Health & Human Services & Biomedical Advanced Research & Development Authority for advanced development of Novavax, Inc (NASDAQ:NVAX)’s recombinant seasonal & pandemic influenza vaccines. This contract had been originally awarded in 2011 February, with funding of upto $97M over the initial base-period that ended in February 2014. The company & the BARDA have now agreed to amend this agreement to allow Novavax, Inc (NASDAQ:NVAX) to continue with accessing the remaining $97M in the base- period funding right through to Sep 2014.

These funds will now support the upcoming Phase-II trial for the company’s H7N9 vaccine- candidate with Matrix-M, and the activities related to the company’s quadrivalent seasonal- influenza vaccine. BARDA will be able to dedicate up to $79M in additional funds for supporting Novavax, Inc (NASDAQ:NVAX)’s later-stage development of the vaccines, during the option period that is currently anticipated to add 2 years to the overall-performance period. Development of the seasonal & pandemic influenza products over the last 3 years under this contract with the BARDA has allowed Novavax, Inc (NASDAQ:NVAX) to refine & develop influenza vaccine-products even as they deliver important clinical-trial results from their seasonal quadrivalent, the avian H5N1, and more recently, the avian H7N9 studies.

While the original development plans of the company had anticipated using the full-amount of the contracted base-period funding within the three-year period, some scope changes & development efforts resulted in the delayed development timelines. Extending this base period allows Novavax, Inc (NASDAQ:NVAX) to continue to access the remainder base-period budget as they initiate a pandemic H7N9 Phase II study early in 2014 and also for additional Phase II & Phase III influenza clinical-trials, which they expect will take place during the option period of the contract said the company’s president and Chief Executive Officer, said Stanley C. Erck.